10 - Suspension of Oncor Proposed Rate Increase

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Item No. 10 Memorandum TO: Mayor, Mayor Pro -Tem, and City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: SUSPENSION OF ONCOR'S PROPOSED RATE INCREASE DATE: July 11, 2022 BACKGROUND: On Friday, May 13, 2022, Oncor filed a Statement of Intent to Increase Rates with all cities in its service area that retain original jurisdiction. The Company is seeking to increase rates by approximately $251 million over rates currently in place, or approximately 4.5% over present revenues. Residential customers would see an 11.2% increase in rates. If approved, a residential customer using 1,300 kWh per month would see a bill increase of about $6.02 per month. Additionally, the Company proposes to increase street lighting rates by 1.6%. STATUS OF ISSUE: The rate increase requested by Oncor will become effective on August 1, 2022, unless the City takes action to suspend the effective date. By statute, cities are permitted to extend the effective date by up to 90 days in order to study the filing. The city must take action to suspend the effective date by August 1, 2022. BUDGET: N/A RECOMMENDATION: Motion to approve the resolution suspending Oncor's proposed rate increase for 90 days in order to examine the validity of the request. The staff will bring back to the Council a recommendation concerning this issue at a later date.